Row over MPs 22% pay rise demand

A Major political row erupted last night after it was revealed that MPs are demanding a 22 per cent pay rise - ten times the rate of inflation.

Labour and Tory MPs met secretly at the Commons last week to plot a wage revolt after growing complaints from backbenchers on all sides that they are underpaid.

They claim they need a 22 per cent rise over two years, bringing their basic pay up to £72,000 a year, in line with senior key workers in the public and private sector.

The timing of the pay revolt is certain to enrage public opinion. Only last week millions who have seen the value of their pensions collapse were told they will have to work until they are 67. And Chancellor Gordon Brown has warned that pay rises should be limited to two per cent.

The furore followed the disclosure that Ann Clwyd, leader of Labour's backbench MPs, secretly met her Tory counterpart Sir Michael Spicer to discuss the pay rise.

Their demand has arisen over a recommendation four years ago by the Senior Salaries Review Body that MPs' pay be linked to that of headteachers, police chief superintendents and directors of mediumsized companies.

But angry MPs claim the Government blocked this and forced them to make do with much smaller increases. They say their pay will soon be 22 per cent less than it should be.

They are paid £59,095 a year, but expenses and allowances take the package closer to £100,000.

Tory MP Anthony Steen defended the move, saying: "MPs should not be paid disadvantageously just because the Government will not let the review board pay us what it said we deserved.

"One of the reasons the Commons lacks quality MPs is because the pay is not enough to attract the best people. I have been here 30 years but I am paid the same as a newcomer.

"Most MPs are terrified to speak about this but think they should be paid commensurate with their responsibilities and duties as an MP. It is not any old job. We are the legislators of the nation."

Mr Steen denied he was demanding a pay rise. "All I am saying is that we gave the SSRB the power to set our pay levels, but when they did so the Government prevented them from implementing them. That is completely wrong." Ms Clwyd confirmed she had discussed MPs' pay with her Conservative counterpart but refused to give details. Asked if MPs wanted a 22 per cent pay rise, she said: "That is bulls***."

Another senior Parliamentary source said: "It is a gross distortion to say we want a 22 per cent increase now. What we want is for the commitment made in 2001 to link our pay with that of others to be implemented in stages."

But the Chancellor will refuse to back the demands. A source said: "Everyone in the public and private sector needs to show wage restraint and stay within the inflation rate, and that includes MPs."

Lib Dem Treasury spokesman Vince Cable said: "A 22 per cent rise would send completely the wrong signal at a time when many people are being subjected to considerable pay restraint.

"The searchlight is already trained on us because of our favourable pensions when many others are in schemes that are collapsing. MPs must be more sensitive to the public mood."